Income StatementPallest Corporation reported the following pretax information for its current fiscal year: $35,000 income from continuing operations and an $7,000 loss arising from discontinuing a segment (it was simply closed, no gain or loss on sale). Pallest is subject to a 30% income tax rate and had 7,000shares of common stock outstanding for the year.Starting with pretax income from continuing operations, prepare a partial income statement for Pallest for the current year. Be sure to include earnings per share information. Round earnings per share computations toPALLEST CORPORATION>Income Statement (Partial)For Year Ended December 31, Current YearPretax income from continuing operationsIncome tax expenseIncome from continuing operationsLoss from discontinued operations (net of taxes)Net IncomeComponents of Income.Income from continuing operationsLoss from discontinued operationsNet incomeCheck My Work00000-000-10,5003 more Check My Work uses remainingnearest cent.

Answered: 30000-000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Income Statement
Pallest Corporation reported the following pretax information for its current fiscal year: $35,000 income from continuing operations and an $7,000 loss arising from discontinuing a segment (it was simply closed, no gain or loss on sale). Pallest is subject to a 30% income tax rate and had 7,000
shares of common stock outstanding for the year.
Starting with pretax income from continuing operations, prepare a partial income statement for Pallest for the current year. Be sure to include earnings per share information. Round earnings per share computations to
PALLEST CORPORATION
>
Income Statement (Partial)
For Year Ended December 31, Current Year
Pretax income from continuing operations
Income tax expense
Income from continuing operations
Loss from discontinued operations (net of taxes)
Net Income
Components of Income.
Income from continuing operations
Loss from discontinued operations
Net income
Check My Work
00000-000
-10,500
3 more Check My Work uses remaining
nearest cent.

Expert Solution

Explanation -

Income Statement -

Income Statement is the statement that shows the income earned by the company during the financial year and expenses incurred during the financial year.

Result of the statement shows net income or loss for the period.

Discontinued Operations -

This are the operations discontinued by the company due to some reason like loss making or out of fashion.

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